Netflix was awesome and basically revolutionary when it was first formed. What do you mean I can rent movies without going to the video store? That's crazy! Then it got even more awesome with streaming content. What do you mean I can just watch everything I ever wanted without even walking to my mailbox? That's crazy! Now here's the tab. Reed Hastings' Netflix has committed to paying Hollywood studios at least $1.2 billion USD for the rights to play new films streaming online.

That number is up from $229 million just three months ago, all this according to the SEC filing filed yesterday. Most of the cost involved in this transaction comes from a 5-year deal Netflix has signed with Epix pay-TV channel service to be able to stream their content through the online service.

Many of Netflix rights to Sony and Disney titles comes with their deal with Starz pay channel, that deal expiring inside a year. With that deal pumping up the max amount of cash Netflix'll be spending by the end of the year, they're looking at something like $2 billion total.

For those of you who want to know more about the EARNINGS of the online giant, take a look at this PDF file presented by Netflix showing their Q3 earnings. Lots and lots of cash!